Remodeled Office
For Sale
Contact for pricing
3131 Superior Dr NW, Rochester, MN 55901
Two-level configuration includes private rooms, restroom, and break room for office or medical use.
Property Size1,890 SF
Price / SF$224.87
Days on Market246
Property Features for 3131 Superior Dr NW
General Information
Standard status
Active
Size
1,890 SF
Property subtype
OFFICE
Additional Details
Office Units
1
Building Details
Buildings
1
Listing Agency:
Hamilton Real Estate
(507) 281-1002
Listed By:
Ari Kolas
(507) 271-5553
Source:
Moodyscre
Added: Jan 12
Changed: Sep 5
Last Checked: Sep 14 at 11:00AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Hamilton Real Estate
Investment Insights
Based on property information with market context.
This 1,890 SF commercial building offers flexible office or medical space across two levels. The upstairs includes 900 SF with four offices and has been newly remodeled with bright, natural light. The 990 SF downstairs suite features three private rooms, a restroom, and a break room.
The property has a shared upper-level entrance and a private lower-level entrance, providing separate access options for the two suites. It is located within a professionally managed business condominium complex at 3131 Superior Dr NW in Rochester, Minnesota.
The property has a shared upper-level entrance and a private lower-level entrance, providing separate access options for the two suites. It is located within a professionally managed business condominium complex at 3131 Superior Dr NW in Rochester, Minnesota.
Key Highlights
- 1,890 SF commercial building with office or medical space
- Upstairs 900 SF includes 4 offices and is newly remodeled
- Downstairs 990 SF suite includes 3 private rooms, restroom, and break room
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$34,828
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.19%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$696,560
$696.6K
Cap Rate 7%
$497,543
$497.5K
Cap Rate 9%
$386,978
$387.0K
Market Conditions
NOI Build-Up for 1,890 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$51.0K $27.00/SF
− Vacancy
−$4.6K −$2.43/SF
EGI
$46.4K $24.57/SF
− OpEx
−$11.6K −$6.14/SF
NOI
$34.8K $18.43/SF
Area
Rochester, MN
Vacancy
9.00%
Lease Rate
$27.00 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$696,560
Cap Rate 7%
$497,543
Cap Rate 9%
$386,978
Alternative Uses
Best Use
Office B
$497.5K
$435.4K – $580.5K
NOI $34,828 @ 7.0% cap · market cap 8.19%
Second Best
Healthcare Medical
$335.9K
$293.9K – $391.9K
NOI $23,515 @ 7.0% cap · market cap 5.53%
Theoretical Best
Office A
$727.9K
$637.0K – $849.3K
NOI $50,956 @ 7.0% cap · market cap 11.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
1
Office units
Location Intelligence
Trade Area within ½ mile
729
Businesses Nearby
Explore this area
Business Placement
Demographics for 55901, MN
58,046
Population
24,852
Households
2.3
Avg Household Size
36
Median Age
50%
College-Educated
94%
High-School Grad
33.1 sq mi
ZIP Area
1,754
Density / Sq Mi
$90,430
Median Household Income
$52,778
Median Earnings
$1,321
Median Rent
$290,000
Median Home Value
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Market
Vacancy Rate% for Office in Midwest region
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Frequently Asked Questions
What type of property is this?
Office units - Two-level configuration includes private rooms, restroom, and break room for office or medical use.
Where is this office units located?
The property is located at 3131 Superior Dr NW Rochester, MN.
What is the asking price?
The asking price for this property is $425,000.
What are key features of this property?
This property features: 1,890 SF commercial building with office or medical space; Upstairs 900 SF includes 4 offices and is newly remodeled; Downstairs 990 SF suite includes 3 private rooms, restroom, and break room
